Shares of IDBI Bank went up by 9% on Thursday, August 21. This happened after Arunish Chawla, a top government official from the Department of Investment and Public Asset Management (DIPAM), said that people who are interested in buying the bank have almost finished checking all the details (this is called due diligence). He also said that everything about the bank has already been shared with them, and they should finish this checking process by September. This means the government is getting closer to selling the bank, which made investors feel more confident about it.
IDBI Bank Share Price
The current share price of IDBI Bank is 98.16 INR, which increased by 8.00 INR, showing a strong gain of 8.87% during the latest trading session
What You Should Know About IDBI Bank’s Big Sale
The government is planning a big sale of IDBI Bank, which is being seen as an important test for its privatisation plans.
- Right now, the government and LIC together own more than 94% of the bank.
- The Centre holds 45.48%, while LIC owns 49.24%.
- In the sale, both will give up a part of their shares.
- The government will sell 30.48% of its stake.
- LIC will sell 30.24% of its share.
- Whoever buys in will end up owning a majority stake in the bank
- Total dilution will be 60.72% of IDBI Bank’s equity share capital.
- This includes the sale of shares by both the government and LIC.
- Management control of the bank will be transferred to the buyer.
Govt Aims To Complete IDBI Bank Sale By FY26
The government of India is planning to sell its parts of stakes in IDBI Bank, and according to reports, this process might complete soon by year 2025–26.
Arunish Chawla, said that this sale is an important part of their plan to raise money. So far, the government has already made ₹20,000 crore in the first three months of the year by selling shares in different companies. Their full goal for the year is ₹47,000 crore. The sale of IDBI Bank is a big part of reaching that goal, and if it works out, it will help the government a lot.
Government Prepares IDBI Bank Sale
The government has started preparing for stake dilution by planning offers for sale (OFS) in select public sector banks and government-owned insurers, including LIC. GOI aims to raise funds plans to reduce government ownership, which will support its broader privatisation and disinvestment strategy across key financial institutions further.
(With Inputs From Sources)
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